The “small business lending rule” issued by the federal consumer financial protection agency will be the subject of a webcast by the agency set for July 25, the agency announced Monday.
The Consumer Financial Protection Bureau (CFPB) said its “regcast” will provide information from the rule, adopted March 30 and widely panned in the financial services industry, to help financial institutions determine whether they are covered financial institutions for purposes of compliance with the rule.
That will include, the bureau said, how to determine if transactions are covered credit transactions and whether businesses are small businesses.
A similar event was hosted by the bureau June 28; the July 25 webcast will cover the same material, the agency said. Those who attended the June event are being asked to refrain from registering for the July 25 event, as registration is limited.
The regcast, the agency said, starts at 11 a.m. ET.
The final rule, unveiled March 30 (meeting a court order to finalize the rule by March 31), requires lenders to collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit. Lenders that originate at least 500 loans annually must collect data starting April 1, 2025. Those that originate at least 100 loans annually must collect data starting Jan. 1, 2026.
Upon announcement of the rule in March, banks, credit unions and other groups leveled criticism, calling it “unnecessarily far-reaching” and “misguided.”